stock option

noun

1
: an option contract involving stock
2
: a right granted by a corporation to officers or employees as a form of compensation that allows purchase of corporate stock at a fixed price usually within a specified period

Examples of stock option in a Sentence

Recent Examples on the Web
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Prosecutors claimed Kim and Messenger agreed to pay Burke a $500,000 salary with stock options projected to be worth millions of dollars. ABC News, 19 May 2026 The proposal would limit executives and administrators at hospitals and physician groups to no more than $450,000 in total annual compensation, including bonuses, stock options and company vehicles. Ben Paviour, Sacbee.com, 15 May 2026 For stock options, puts generally trade at a premium to at-the-money options and out-of-the-money calls. Michael Khouw, CNBC, 13 May 2026 One major company’s latest layoffs disproportionately targeted employees with unvested stock options. Solo Ceesay, Rolling Stone, 7 May 2026 See All Example Sentences for stock option

Word History

First Known Use

1877, in the meaning defined at sense 1

Time Traveler
The first known use of stock option was in 1877

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Cite this Entry

“Stock option.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20option. Accessed 23 May. 2026.

Legal Definition

stock option

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